Sky Petroleum, Inc. provides an update on the testing program regarding the Mubarek K2-ST4 well located in the Mubarek Field, offshore United Arab Emirates.

Crescent Petroleum Company International Limited ("Crescent"), the operator of the Mubarek Field, reports that the well was drilled to a total depth of 13,528 feet into the Ilam oil reservoir, and has subsequently been stimulated with acid and put on production with gas lift from the Ilam reservoir. After initial tests, the well was flowing at 742 BOPD (Barrels of Oil per Day). The well will be observed in order to optimize production conditions.

The Participation Agreement with Crescent gives Sky Petroleum the right to participate in a share of the future production revenue by contributing up to $25 million in drilling and completion costs related to two obligation wells in the Mubarek Field, offshore United Arab Emirates. The $25 million commitment for both wells was fully paid by the end of the first quarter of 2006. On completion of the two obligation wells a further well development program will be evaluated.